The university says the gift will help pay for expansion of its residential college system

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Yale University has announced a $250 million gift from a 1954 graduate, saying it's the largest in school history and will help pay for an expansion of its residential college system, which will increase enrollment.

Yale President Peter Salovey announced the gift commitment Monday from Charles B. Johnson. He retired last year as chairman of the board of the parent company of Franklin Templeton Investments.

Salovey says the gift brings Yale within $80 million of the funds needed to break ground on two new residential colleges.

Yale has 12 existing residential colleges. It last built new ones in 1961. The construction of two more will enable the Ivy League university to accept a larger percentage of highly qualified applicants to its undergraduate program.